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Ohio bill consolidates property tax issue into one proposal

Ohio bill consolidates property tax issue into one proposal

Yahoo2 days ago

(WKBN) – Another bill announced Wednesday by Ohio lawmakers is putting together several other bills into one legislative measure to address rising property taxes in the state.
State Representatives Bill Roemer (R-Richfield) and David Thomas (R-Jefferson) announced the Property Tax Relief Now Act (House Bill 335).
Roemer and Thomas say the proposed legislation would deliver $3.5 million in property tax relief and overhaul the property tax system in Ohio 'in the most impactful way since 1976.'
'We have been gathering these ideas for years and know the time is now to address this crisis before it gets even worse. We have to respond to the needs of our taxpayers who saw record spikes over the last 5 years and paid more into the property tax system because of high values and local entities accepting the unvoted inside millage. We must return the power to the voters and give oversight to taxpayers,' Thomas said in a news release.
Thomas also serves as vice chair of the House Ways and Means Committee.
The Property Tax Relief Now Act would provide the following:
Caps on School and JVSD TaxesThe bill works to address spikes in unvoted property taxes by creating a new tax credit to limit the growth in revenue school districts can receive from the 20-mill floor to the rate of inflation. For further explanation, if a house's property value goes up, and a school district is at the 20-mill floor, there will be a limit on what the homeowner will have to pay in property taxes.
Local Homestead ExemptionsAuthorizes the Board of County Commissioners the authority to provide local homestead exemptions to county residents (including low-income seniors, disabled veterans, and the spouses of first responders killed in the line of duty), applied against the resident's total home value. These local tax exemptions are in addition to the state's existing homestead exemptions and will be identical to the state's traditional and enhanced homestead exemptions.
Promotes Transparency in Property Tax LeviesThe legislation works to give taxpayers a guaranteed tax rate and a clearer understanding of the impact of their vote on levies. The bill removes a loophole in the tax reduction factor by requiring that certain fixed sum levies count toward the school district 20-mill floor calculation, including emergency levies. Additionally, the bill eliminates the authority of school districts to seek new substitute levies. Unlike other fixed-sum levies, substitute levies generate additional revenue when new construction is added to the tax list. Finally, the bill will prohibit a school district from changing the purpose of its inside millage in any way that would increase its property tax revenue.
Billions in Direct ReliefInside millage is property tax millage that may be levied without prior voter approval, up to 10 mills per property. The bill includes provisions that prohibit all political subdivisions from levying inside millage, except townships. Townships may levy inside millage, but it is limited to the amount they levied in tax year 2024. This update will deliver a direct tax savings of $3.5 billion to Ohioans.
Allows Optional Local Sales Tax IncreaseAs part of the bill, counties may raise their sales tax by up to 1% only with approval from the majority of voters, giving communities alternative revenue options beyond property tax increases.
Oversight of Excess Reserves & Increased Public Input on LeviesThe bill expands on the House-passed version of the budget by requiring the County Budget Commission (CBC) to hold public hearings if any taxing authority carries over more than 30% of its annual budget in reserve. The County Budget Commission can reduce future levies accordingly. Additionally, the legislation ensures greater community awareness and involvement by requiring public meetings on new county commissioner proposed levies.
Prevents Shifting Inside MillageAdditionally, the bill prohibits a school district from increasing tax revenue by changing the purpose of unvoted inside millage, reducing stealth tax hikes.
More Authority for Budget CommissionsUnder this legislation, County Budget Commissions get greater power to monitor, review, and adjust levies — improving coordination across taxing authorities.
The bill will receive a committee assignment in the coming days.
Valley residents complained of sticker shock during the recent property reassessment that fueled increases as much as 30%. Properties underwent scheduled reassessment in 2022 and 2023, and those tax bills came due in 2024.
Commissioners in Trumbull and Mahoning counties have been working with lawmakers to address the issue, calling for a coalition of counties to come together and press lawmakers to provide relief for homeowners.
Earlier this month, the Ohio Attorney General approved language that could soon allow for the Citizens for Property Tax Reform to put a constitutional amendment on the November ballot to eliminate property taxes in Ohio.
The County Auditor's Association of Ohio has been at the forefront in asking for property tax reform, and some lawmakers have taken their suggestions — some of which are in the Property Tax Relief Now Act. You can read more about their suggestions on the group's website.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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